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^ .
Housing Authority o f the CITY OF GRAMBLING
Grambling, Louisiana
Annual Financial Report As of and for the Year Ended September
30,2011
Under provisions of state !aw, tliis report is a public
document. Acopy of the report has been submitted to the entity and
other appropriate public officials. The report is available for
public inspection at the Baton Rouge office ofthe Legislative
Auditor and, where appropriate, at the office of the parish clerk
of court.
R„e,s,O„eAPR2 5 2012
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Basic Financial Statements As of and for the Year Ended
September 30, 2011
With Supplemental Information Schedules
CONTENTS
Exhibit Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements: Statement of Net Assets Statement of
Revenues, Expenses and Changes in Net Assets Statement of Cash
Flows Notes to the Financial Statements
Independent Auditor's Reports Required by Government Auditing
Standards; OMB Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations; and the Single Audit Act Amendments
of 1996:
Report On Internal Control Over Financial Reporting And On
Compliance And Other Matters Based On An Audit Of Financial
Statements Performed In Accordance With Government Auditing
Standards
Report On Compliance With Requirements Applicable To Each Major
Program And On Internal Control Over Compliance In Accordance With
OMB Circular A-133
Schedule of Current Year Findings and Questioned Costs
Schedule of Prior Audit Findings
Corrective Action Plan for Current Year Audit Findings
Supplemental Information Schedules
Schedule of Compensation Paid Board Members
Schedule of Expenditures of Federal Awards
Financial Data Schedule
Status of Prior Year Management Letter Items
A B C
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William Daniel McCaskill, CPA A Professional Accounting
Corporation
415 Magnolia Lane IVIandeville, Louisiana 70471
Telephone 866-829-0993 lUlember of Fax 225-665-1225 Louisiana
Society of CPA's E-mail [email protected] American Institute
of CPA's
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners Housing Authority ofthe City of Grambling
Grambling, Louisiana
I have audited the accompanying basic financial statements ofthe
Housing Authority of the City of Grambling (the authority) as of
and for the year ended September 30. 2011, as listed in the table
of contents. These basic financial statements are the
responsibility of the authority's management. My responsibility is
to express an opinion on these basic financial statements based on
my audit.
I conducted my audit in accordance with auditing standards
generally accepted in the United States of America and the
standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that I plan and perform the audit
to obtain reasonable assurance about whether the basic financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the basic financiai statements. An audit also
includes assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the
overall financial statement presentation. I believe that my audit
provides a reasonable basis for my opinion.
In my opinion, the basic financial statements referred to above
present fairly in all material respects, the financial position of
the Housing Authority of the City of Grambling as of September 30,
2011, and the respective changes in financial position and cash
flows, thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of
America.
mailto:[email protected]
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling.
Louisiana
Independent Auditor's Report, 2011 Page Two
In accordance with Government Auditing Standards, I have also
issued my report dated February 7. 2012 on my consideration of the
authority's internal control over financial reporting and on my
tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The
purpose of that report is to describe the scope of my testing of
internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be considered in assessing
the results of my audit.
The management's discussion and analysis listed in the table of
contents, is not a required part of the basic financial statements
but is supplemental information required by accounting principles
generally accepted in the United States of America. I have applied
certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, I
did not audit the information and express no opinion on it.
My audit was conducted for the purpose of forming opinions on
the financial statements which collectively comprise the
authority's basic financial statements. The financial data schedule
and other supplementary information schedules listed in the table
of contents are presented for the purpose of additional analysis
and are not a required part of the basic financial statements of
the authority. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required
by the U.S. Office of Management and Budget Circular A-133, Audits
of States, Local Governments, and Non-ProfIt Organizations, and is
not a required part of the basic financial statements of the
authority. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements,
and in my opinion, is fairly stated in alt material respects in
relation to the basic financial statements taken as a whole.
Wiffiam (DanieCMcCas^O:
William Daniel McCasl
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HOUSING AUTHORITY OF GRAMBLING, LOUISIANA
REQUIRED SUPPLEMENTAL INFORMATION
MANAGEMENT DISCUSSION AND ANALYSIS (MD&A)
SEPTEMBER 30, 2011
The management of Public Housing Authority of Grambling,
Louisiana presents the following discussion and analysis (MD&A)
ofthe Housing Authority's financial activities forthe fiscal year
ending September 30,2011. This represents an overview of financial
information. Please read this discussion and analysis in
conjunction with the Authority's included audited financial
statements.
FINANCIAL HIGHLIGHTS
• Tlie primary source of funding for tiiese activities continues
to be subsidies and grants from the Department of Housing and Urban
Development (HUD), whereas tenant rentals provide a secondary but
also significant source of funding.
• The Housing Authority's assets exceeded its liabilities by
$2,785,459 at the close of the fiscal year ended 2011.
•/ Of this amount $2,055,118 represents a restriction equal to
the net amount invested in land, buildings, furnishings, leasehold
improvements, equipment, and constmction in progress, minus
associated debts.
• Also of this amount. $136.852 of net assets are restricted for
the Housing Choice Voucher program
v̂ The remainder of $593,489 of unrestricted assets could be
used to meet the Housing Authority's ongoing obligations to
citizens and creditors. As a measure of financial strength, this
amount equals 67% of the total operating expenses of $889,842 for
the fiscal year 2011, which means the Authority might be able to
operate about 8 months using the unrestricted assets alone,
compared to 8 months in the prior fiscal year.
• The Housing Authority's total net assets decreased by $52,399,
a 2% decrease from the prior fiscal year 2010.
• The decrease in net assets of these funds was accompanied by a
decrease in unrestricted cash by $22,612 from fiscal year 2010,
primarily due to spending more for operations than Federal funds
received for operations.
• The Authority spent $103,624 on capital asset additions and
$46,910 on construction in progress during the current fiscal
year.
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Housing Authority of Grambling, Louisiana
Management's Discussion and Analysis (MD&A) September 30,
2011
• These changes led to a decrease in total assets by $35,930 and
an increase In total liabilities by $16,470. As related measure of
financial health, there are still over $10 of cun'ent assets
covering each dollar of total current liabilities, which compares
to $11 covering the prior fiscal year's liabilities.
• The Housing Authority continues to operate without the need
for debt borrowing.
OVERVIEW OF THE FINANCIAL STATEMENTS This MD8A is intended to
serve as an introduction to the Housing Authority's basic financial
statements. The Housing Authority Is a special-purpose government
engaged in business-type activities. Accordingly, only fund
financial statements are presented as the basic financial
statements, comprised of two components: (1) fund financial
statements and (2) a series of notes to the financial statements.
These provide information about the activities ofthe Housing
Authority as a whole and present a longer-term view of the Housing
Authority's finances. This report also contains other supplemental
information in addition to the basic financial statements
themselves demonstrating how projects funded by HUD have been
completed, and whether there are inadequacies in the Authority's
internal controls.
Reporting on the Housing Authority as a Whole
One ofthe most important questions asked about the Authority's
finances is, "Is the Housing Authority as a whole better off, or
worse off, as a result of the achievements of fiscal year 2011?"
The Statement of Net Assets and the Statement of Revenues,
Expenses, and Changes in Net Assets report infomiation about the
Housing Authority as a whole and about its activities in a way that
helps answer this question. These statements include all assets and
liabilities using the accrual basis of accounting, which is similar
to the accounting used by most private-sector companies. All of the
current year's revenues and expenses are talcen into account
regardless of when cash is received or paid.
Fund Financial Statements
The Housing Authority accounts for all financial activity in a
single enterprise fund. A fund is a grouping of related accounts
that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Housing
Authority, like other enterprises operated by state and local
governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
The Housing Authority's financial statements report its net
assets and changes in them. One can think of the Housing
Authority's net assets - the difference between assets and
liabilities - as one way to measure the Authority's financial
health, or financial position. Over time, increases and decreases
in the Authority's net assets are one indicator of whether its
financial health is improving or deteriorating. One will need to
consider other non-financial factors, however, such as the changes
in the Authority's occupancy levels or its legal obligations to
HUD, to assess the overall health ofthe Housing Authority.
USING THIS ANNUAL REPORT
The Housing Authority's annual report consists of financial
statements that show combined information about the Housing
Authority's most significant programs:
Low Rent Public Housing $ 220,980 Public Housing Capital Fund
Program 61,797 Housing Choice Vouchers 423,136 ARRA Stimulus
11612
Total funding received this cun-ent fiscal year $717.525
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Housing Authority of Grambling, Louisiana
Management's Discussion and Analysts (MD&A) September 30,
2011
The Housing Authority's auditors provided assurance in their
independent auditors' report with which this MD&A is included,
that the basic financial statements are fairly stated. The auditors
provide varying degrees of assurance regarding the other
information included in this report. A user of this report should
read the independent auditors' report carefully to determine the
level of assurance provided for each of the other parts of this
report.
FINANCIAL ANALYSIS
The Housing Authority's net assets were $2,785,459 as of
September 30, 2011. Of this amount, $2,055,118 was invested in
capital assets, and $593,489 was unrestricted. There were $136,852
in specific assets restricted Housing Choice Voucher (HCV)
program.
CONDENSED FINANCIAL STATEMENTS
Condensed Statement of Net Assets As of September 30,2011
2011 2010
ASSETS Cun-ent assets • r ^ ^1 ̂ -235 $824,981
Capital assets, net of depreciation
Total assets
LIABILITIES Cunrent liabilities Non-current liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of depreciation 2,056,118
2,081,302 Net assets restricted for the Housing Choice Voucher
program 136,852 133,528 Unrestricted net assets 593,489 623,028
Total net assets 2.785,459 2.837.858
Total liabilities and net assets 2,870.354 2,906.283
2.055.118
2.870.354
66,760 18,135
84,895
2.081.302
2,906,283
61,146 7.279
68,425
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Housing Authority of Grambling. Louisiana
Management s Discussion and Analysis (MD&A) September
30.2011
CONDENSED FINANCIAL STATEMENTS (Continued)
The net assets of these funds decreased by $52,399, or by 2%,
from those of fiscal year 2010, as explained below. In the
nan-ative that follows, the detail factors causing this change are
discussed:
Condensed Statement of Revenues, Expenses, and Changes in Fund
Net Assets Fiscal Year Ended September 30,2011
2011 2010
OPERATING REVENUES Tenant rental revenue Other tenant
revenue
Total operating revenues
OPERATING EXPENSES General Maintenance and repairs
Administrative expenses and management fees Utilities Federal
Housing Assistance Payments (HAP) to landlords Depreciation Tenant
services Extraordinary repairs
Total operating expenses
(Losses) from operations
NON-OPERATING REVENUES Federal grants for operations Interest
income
Other non-tenant revenue
Total Non-Operating Revenues
NON-OPERATING EXPENSES
(Losses) after non-operating revenues OTHER CHANGES IN NET
ASSETS
Federal grants for capital expenditures
NET INCREASE (DECREASE) IN NET ASSETS
NET ASSETS, beginning of fiscal year
NET ASSETS, end of fiscal year
$101,064 11.258
112,322
72,339 73.196 179.697 12,599
373.573 176.717
971 750
889.842
(777,520)
664.268 351
7.245
671.864
(105,656)
53.257
(52,399)
2,837,858
2.785.459
$101,196 5.514
106,710
68,849 101,747 189.032 11,530
409,008 173,309 1,977 1,800
957.252
(850.542)
633.259 385
6,399
640,043
(210.499)
345.400
134.901
2.702.957
2,837,858
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Housing Authority of Grambling. Louisiana
Management's Discussion and Analysis (MD&A) September 30,
2011
EXPLANATIONS OF FINANCIAL ANALYSIS
Compared with the prior fiscal year, total operating and
non-operating revenues decreased $254,710, or by 23%. from a
combination of larger offsetting factors. Reasons for most of this
change are listed below:
• Total tenant revenue increased by $5.612. or by 5%, from that
of the prior fiscal year due to the amount of rent each tenant pays
which is based on a sliding scale oftheir personal income. Though
tenants' rent revenue decreased, other tenant revenues (such as
fees collected from tenants for late payment of rent, damages to
their units, and other assessments) increased by $5,744.
• Federal revenues from HUD for operations increased by $31,009,
or by 5%, from that of the prior fiscal year. The amount of rent
subsidy received from HUD depends upon an eligibility scale of each
tenant. There was an increase in the number of eligible tenants
receiving subsidies, so Housing Assistance Grants increased
accordingly.
• Federal Capital Funds from HUD decreased by $292,143, or by
85%, from that ofthe prior fiscal year. The Housing Authority was
still in the process of completing projects funded from grants by
HUD for fiscal years 2006 through 2009.
• Total other non-operating revenue increased by $846, or by
13%, from that of the prior fiscal year, because the authority
received Port admin fees as well as HAP reimbursements for those
ports which are classified as other income on the FDS.
• Interest income totaling $351. did not change significantly
from the prior to the current year.
Compared with the prior fiscal year, total operating and
non-operating expenses decreased $67,409, or by 7%, but this also
was made up of a combination of offsetting factors. Again, reasons
for most of this change are listed below:
• Depreciation expense increased by $3,409 from that of the
prior fiscal year.
• Maintenance and repairs decreased by $29.601, or by 29%, from
that of the prior fiscal year, due to several factors: Repair staff
wages decreased by $15,534, and related employee benefit
contributions decreased by $3,703. Contract labor costs increased
by $5,380, but materials used decreased by $14,694. In addition.
Extraordinary maintenance decreased by $1,050 from that of the
prior fiscal year.
• General Expenses Increased by $3,490, or by 5%. from that
ofthe prior fiscal year, and payments in lieu of taxes (PILOT)
decreased by $179, or by 2%. PILOT is calculated as a percentage of
rent minus utilities which, therefore, changed proportionately to
the changes in each of these, primarily because Insurance premiums
decreased by $5,213. or by 12%, (since property and casualty
insurance premiums decreased) whereas other general expenses
decreased by $1,892, or by 31 %. In addition, bad debts increased
by $727, and compensated absences increased by $10,048 from that of
the prior fiscal year.
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Housing Authority of Grambling, Louisiana
Management's Discussion and Analysis (MD&A) September
30,2011
• Administrative Expenses decreased by $9,335, or by 5%, from
that of the prior fiscal year, due to a combination of offsetting
factors: Administrative staff salaries increased by $9,932, and
related employee benefit contributions increased by $4,761;
therefore, total staff salaries and benefit costs increased by 13%.
In addition, audit fees decreased by $2,443 legal fees increased by
$510; thus, total outside professional fees decreased by 16%.
Finally, staff training/travel reimbursements decreased by $21,922,
office expenses increased by $3,333, and sundry expenses decreased
by $3,506; therefore, other staff administrative expense decreased
by 36%.
• Housing Assistance Payments to landlords decreased by $35,435.
or by 9%, from that of the prior fiscal year, because there was a
decrease in the number of tenants qualifying for subsidy during the
year.
• Utilities Expense increased by $1,069. or by 9%, from that of
the prior fiscal year, due to numerous cumulative factors: Water
cost increased by $12 due to an increase in rate by 96%;
electricity cost increased by $1,398 due to an increase in
consumption by 6%; gas cost decreased by $491 due to a decrease In
consumption by 44%; and finally, other utilities expense (such as
labor, benefits, gartaage, sewage, and waste removal) decreased by
$340.
• Finally, other tenant services decreased by $1,006. or by 51%,
from that ofthe prior fiscal year.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At September 30, 2011, the Housing Authority had a total cost of
$5,930,009 invested in a broad range of assets and construction in
progress from projects funded in 2006 through 2009, listed below.
This amount, not including depreciation, represents increases of
$150,534 from the prior year. More detailed infomiation about
capital assets appears in the notes to the financiai
statements.
Capital Assets, Net of Accumulated Depreciation As of September
30,2011
2011 2010 Land $ 120.589 $120,589 Construction in progress
392,311 345,400
Buildings 1,451,601 1,448,052 Leasehold improvements 70,855
77,549 Furniture and equipment 19,762 89 712
Total 2,055.118 2,081,302
As of the end of the 2011 fiscal year, the Authority is still in
the process of completing HUD grants of $745,464 obtained during
2006 through 2009 fiscal years.
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Housing Authority of Grambling. Louisiana
Management's Discussion and Analysis (MD&A) September
30,2011
Debt
Non-current liabilities also include accrued annual vacation
leave due to employees. The Housing Authority has not incun^ed any
mortgages, leases, or bond indentures for financing capital assets
or operations.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The Housing Authority is primarily dependent upon HUD for the
funding of operations; therefore, the Housing Authority is affected
more by Federal budget than by local economic conditions. The
capital budgets forthe 2012 fiscal year have already been submitted
to HUD for approval and no major changes are expected.
The Capital fund programs are multiple year budgets and have
remained relatively stable. Capital Funds are used for the
modemization of public housing properties including administrative
fees involved in the modernization.
CONTACTING THE HOUSING AUTHORITY'S FINANCIAL MANAGEMENT
Our financial report is designed to provide our citizens,
investors, and creditors with a general oven îew ofthe Housing
Authority's finances, and to show the Housing Authority's
accountability for the money it receives. If you have questions
about this report, or wish to request additional financial
information, contact Bridgett Tanner, at Public Housing Authority
of Grambling. Louisiana; P.O. Box 626; Grambling. LA 71245.
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Housing Authority o f the City of Grambling Grambling, Louisiana
Statement of Net Assets
As of September 30, 2011
Exhibit A
ASSETS Current assets
Cash and cash equivalents Receivables:
HUD Tenant rents, net of allowance
Prepaid insurance^ Inventory, net of allowance Restricted assets
- cash and cash equivalents
Total current assets
454.155
180,393 2,868
20.635 432
156,752
815,235
Noncurrent assets Capital assets:
Nondepreciable capital assets: Land Construction in pix)gress
Total nondepreciable capital assets
Depreciable capital assets: Buildings and improvements Furniture
and equipment Less accumulated depreciation Total depreciable
capital assets, net of accumulated depreciation
Total capital assets, net of accumulated depreciation
Total assets
120,589 392.310 512.899
5,151,291 265,819
(3,874.892) 1.542,218
2.055.117
2.870.352
(continued)
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Housing Authority of the City of Grambling Grambling, Louisiana
Statement of Net Assets
As of September 30, 2011
Exhibit A
LIABILITIES Current Liabilities Accounts payable Payable to
other governments Accrued wages payable Accrued compensated
absences Deferred revenue Other liability Security deposit
liability
Total current liabilities
Noncurrent liabilities
Accrued compensated absences
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt Restricted
Unrestricted Total net assets
9,286 8,846 4.687 4.363
18.734 943
19,900
66,759
18.135
18.135
84.894
2.055.117 136,852 593.489
$ 2.785.458
The accompanying notes are an integral part of these financial
statements.
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Exhibit B
Housing Authority o f t he City of Grambling Grambling,
Louisiana
Statement of Revenues, Expenses, and Changes In Net Assets
For the Year ended September 30. 2011
Operating Revenues HUD Operating Grants $ 664.268 Dwelling
Rental 101.064
Other Operating 11.258
Total operating revenues 776,590
Operating Expenses
Housing Assistance Payments 373.573 General and administrative
252,036 Repairs and maintenance 73,946 Utilities 12,600 Tenant
sen/ices 971 Depreciation and amortization 176,718
Total operating expenses 889,844
Operating Income (loss) (113.254)
Nonoperating Revenues (Expenses): Interest revenue 351
Miscellaneous revenues 7.245
Total nonoperating revenues (expenses)
Income (loss) before other revenues, expenses, gains, losses and
transfers
Capital contributions (grants)
Increase (decrease) in net assets
Net assets, beginning of year
Net assets, end of year The accompanying notes are an integral
part of these financial statements.
7.596
(105.658)
53,257
(52,401)
2,837,859
$ 2.785.458
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Extiibit C Housing Authority o f the City of Grambling
Statement of Cash Flows For the Year ended September 30,
2011
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from federal subsidies $ 662,482 Receipts from tenants
110,789 Payments to landlords (373,573) Payments to suppliers
(193,860)
Payments to employees f130.112)
Net cash provided by operating activities 75,726
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Miscellaneous revenues 7,245
Net cash provided by noncapital financing activities 7,245
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds fi'om capital grants 53,257 Purchase and construction
of capital assets (150,534)
Net cash (used in) capital and related financing activities
(97,277)
CASH FLOWS FROM INVESTING ACTIVITIES Interest received 351_
Net cash provided by investing activities 351_
Net increase (decrease) in cash and cash equivalents
(13.955)
Cash and cash equivalents - beginning of year 624,862
Cash and Cash equivalents - unrestricted 454,155
Cash and Cash equivalents - restricted 156,752
Total Cash and Cash Equivalents - end of year $ 610.907
Reconciliation of operating income (loss) to net cash provided
by operating activities:
Operating (loss) $ (113,254)
Adjustments to reconcile operating (loss) to net cash provided
by operating activities:
Depreciation and amortization 176,718
Changes in assets and liabilities:
HUD receivable (1.786) Tenant rents, net of allowance (1,408)
Prepaid Insurance (882) Inventories (133) Accounts payable , 6,121
Accnjed wages payable 1,616 PILOT Payable (181) Accrued compensated
absences 11,503 Other Liability (6,490) Defen-ed Revenues 4,027
Security deposit liability (125)
Net cash provided by operating activities $ 75,726
The accompanying notes are an integral part of the financial
statements
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Basic Financial Statements September 30, 2011
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The
accompanying basic financial statements of the authority have been
prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP) as applied to
governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing
governmental accounting and financial repoiling principles.
(1) Reportinc Entitv
The Housing Authority of The City of Grambling (the authority)
was chartered as a public corporation under the laws of the State
of Louisiana for the purpose of providing safe and sanitary
dwelling accommodations for the residents of the City of Grambling,
Louisiana. This formation was contingent upon the approval of the
city.
The authority is governed by a Board of Commissioners (Board),
which is composed of five members appointed by the city and serve
five-year staggered terms. The Board ofthe authority exercises all
powers granted to the authority.
GASB Statement No. 14 established criteria for determining the
governmental reporting entity. Under provisions of this statement,
the authority is considered a primary government, since it is a
special purpose government that has a separately elected governing
body, is legally separate, and is fiscally independent of other
state and local governments. As used in GASB 14, fiscally
independent means that the authority may, without the approval or
consent of another governmental entity, determine or modify its own
budget, control collection and disbursements of funds, maintain
responsibility for funding deficits and operating deficiencies, and
issue bonded debt. The authority has no component units, defined by
GASB 14 as other legally separate organizations for which the
elected authority members are financially accountable.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
The authority is a related organization of the City of
Grambling, Louisiana since the city appoints a voting majority of
the authority's governing board. The city is not financially
accountable for the authority as it cannot impose its will on the
authority and there is no potential for the authority to provide
financial benefit to, or impose financial burdens on, the city.
Accordingly, the authority is not a component unit of the financial
reporting entity of the city.
(2) Funds
The accounts of the authority are organized and operated on the
basis of funds. A fund is an independent fiscal and accounting
entity with a self-balancing set of accounts. Fund accounting
segregates funds according to their intended purpose and is used to
aid management in demonstrating compliance with finance-related
legal and contractual provisions. The minimum number of funds is
maintained consistent with legal and managerial requirements.
All funds of the authority are classified as proprietary. The
general fund accounts for transactions of all of the authority's
programs.
Proprietary funds distinguish operating revenues and expenses
from nonoperating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing
operations. The principal operating revenues of the authority's
enterprise fund are HUD operating grants and subsidies, Section 8
Housing Assistance Subsidies, Section 8 Management Fees and tenant
dwelling rents. Operating expenses include Section 8 Housing
Assistance Payments, General and Administrative expenses, repairs
and maintenance expenses, utilities and depreciation and
amortization on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and
expenses.
The accompanying basic financial statements of the authority
have been prepared in conformity with governmental accounting
principles generally accepted in the Unites States of America. The
GASB is the accepted standard setting body for establishing
governmental accounting and financial reporting principles. The
accompanying basic financial statements have been prepared in
conformity with GASB statement No. 34. Basic Financial Statements
and Managements discussion and Analysis—for State and Local
Governments, which was unanimously approved in June 1999 by the
GASB.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
(3) Measurement focus and basis of accounting
Proprietary finds are accounted for on the flow of economic
resources measurement focus and the accrual basis of accounting.
Under this method, revenues are recorded when earned and expenses
are recorded at the time the liabilities are incurred. With this
management focus all assets and all liabilities associated with the
operation of these funds are included on the statement of net
assets. The authority has elected, pursuant to GASB Statement No.
20, to apply all GASB pronouncements and only FASB pronouncements
issued before November 30,1989.
(4) Assets, liabilities, and net assets
(a) Deposits
The authority's cash and cash equivalents are considered to be
cash on hand, demand deposits, and short-term investments with
original maturities of three months or less from the date of
acquisition. HUD regulations, state law and the authority's
investment policy allow the housing authority to invest in
collateralized certificates of deposit and securities backed by the
federal government.
(b) Inventory and prepaid items
All inventories are valued at cost on a first-in first-out
(FIFO) basis. Inventories consist of expendable building materials
and supplies held for consumption in the course of the authority's
operations.
Certain payments to vendors reflect costs applicable to future
accounting periods and are recorded as prepaid items.
(c) Restricted Assets
Cash equal to the amount of tenant security deposits for the Low
Rent Program and Housing Assistance Payment reserves for the
Housing Choice Voucher Program are reflected as restricted.
(d) Capital assets
Capital assets of the authority are included in the statement of
net assets and are recorded at actual cost. The capitalization
threshold is $500.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
Depreciation of all exhaustible fixed assets is charged as an
expense against operations.
Property, plant, and equipment of the Authority is depreciated
using the straight line method over the following estimated useful
lives:
Buildings 33 years Modernization and improvements 15 years
Furniture and equipment 3-7 years
(e) Due from/to other governments or agencies
Amounts due from/to the authority to/by other governments or
agencies are generally for grants or programs under which the
services have been provided by the authority. The authority also
records an amount due to the various taxing districts within the
region for payments in lieu of taxes.
(f) Allowance for doubtful accounts
The authority provides an allowance for doubtful accounts, as
needed, for accounts deemed not collectible. At September 30, 2011,
the management of the authority established an allowance for
doubtful accounts of approximately $5,254.
(g) Compensated absences
It is the authority's policy to permit employees to accumulate
earned but unused vacation pay benefits, tn accordance with the
provisions of GASB Statement No. 16, "Accounting for Compensated
Absences," yacaWon pay is accrued when incurred and reported as a
liability. Employees earn from 98 to 192 annual leave hours per
year and may accumulate an unlimited number of annual leave hours.
Employees receive payment for up to 300 annual leave hours upon
termination or retirement at their then current rate of pay.
However, one employee, per written contract, shall be paid for all
accumulated annual leave upon separation from employment with the
authority. The cost of current leave privileges, computed in
accordance with GASB Codification Section C60 is recognized as a
current year expense when leave is earned.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
(h) Restricted net assets
Net assets are reported as restricted when constraints placed on
net asset use are either:
Externally imposed by creditors (such as debt covenants),
grantors, contributors or laws or regulations of other governments
or imposed by law through constitutional provisions or enabling
legislation.
Restricted resources are used first when an expense is incurred
for purposes for which both restricted and unrestricted assets are
available.
(i) Use of estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the government-wide financial statements
and reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
NOTE B - DEPOSITS
Deposits are stated at cost, which approximates fair value.
Under state law and/or federal regulation, these deposits, or the
resulting bank balances, must be in Federal Securities, secured by
federal deposit insurance or the pledge of federal securities. The
fair value of the pledged securities plus the federal deposit
insurance must at all times equal the amount on deposit with the
fiscal agent.
As of September 30, 2011, the authority's carrying amount of
deposits was $610,907, which includes the following:
Cash and cash equivalents-unrestricted Cash and cash
equivalents- restricted Total
$454,155 156.752
$610,907
Interest Rate Risk—The authority's policy does not address
interest rate risk.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
Credit Rate Risk—Since all of the authority's deposits are
federally insured and/or backed by federal securities, the
authority does not have credit rate risk.
Custodial Credit Risk—This is the risk that in the event of a
bank failure, the authority's deposits may not be returned to it.
The authority does not have a policy for custodial credit risk.
$252,622 of the authority's total deposits were covered by federal
depository insurance, and do not have custodial credit risk. The
remaining $373,777 of deposits have custodial credit risk, but were
collateralized with securities held by the pledging financial
institution trust department or agent. The bank balances at
September 30, 2011 totaled $626,399.
NOTE C - CAPITAL ASSETS
Capital assets activity for the year ended September 30, 2011
was as follows:
Deletions Adjustment 9 30 2011
120,589
392,309
5,151,290
265.821
Nondepreciable Assets:
Land
Construction in Progress Depreciable Assets: Building and
improvements
Furniture and equipment
Total
Less accumulated depreciation Building and improvements
Furniture and equipment Total accumulated depreciation
Net Capital Assets
9 30 2010
120.589
345,399
5,060.444
253,043
5,779,475
3,516,697
181,477
3,698,174
2.081,301
Additions
46.910
90,846
12,778
150,534
167,074
9,644
176,718
(26,184)
5.930,009
3,683.771
191,121
3.874.892
2.055.117
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
NOTE D - CONSTRUCTION COMMITMENTS
The authority is engaged in a modernization program and has
entered into construction type contracts with approximately
$265,508 remaining until completion.
NOTEE ' COMPENSATED ABSENCES
At September 30, 2011, employees of the authority have
accumulated and vested $22,498 of employee leave benefits, which
was computed in accordance with GASB Codification Section C60. The
leave payable is recorded in the accompanying financial statements.
$18,135 is reported in long-term debt.
NOTEF-LONG TERM OBLIGATIONS
As of September 30, 2011, long term obligations consisted of
compensated absences in the amount of $18,135. The following is a
summary ofthe changes in the long term obligations for the year
ended September 30, 2011.
Compensated Absences
Balance as of October 1, 2010 $7,279 Additions 11,113 Deductions
(257)
Balance as of September 30, 2011 (Long term) 18,135
Amount due in one year (Short term) $4,363
NOTE G - POST EMPLOYMENT RETIREMENT BENEFITS
The authority does not provide any post employment retirement
benefits. Therefore the authority does not include any entries for
unfunded actuarial accrued liability, net OPEB expense, or annual
contribution required.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
NOTE H - RETIREMENT PLAN
The authority participates in the Housing Agency Retirement
Trust plan, administered by Mercer, which is a defined contribution
plan. The plan consists of employees of various local and regional
housing authorities, urban renewal agencies, and other similar
organizations. Through this plan, the authority provides pension
benefits for all of its full-time employees. All regular and
full-time employees are eligible to participate in the plan on the
first day ofthe month after completing six months of continuous and
uninterrupted employment. Plan provisions and changes to the plan
contributions are determined by the Board of the authority.
Under a defined contribution plan, benefits depend solely on
amounts contributed to the plan plus investment earnings. The
employer is required to make monthly contributions equal to 7.5
percent of each participant's basic (excludes overtime)
compensation. Employees are required to contribute 5.5 percent of
their annual covered salary.
The authority's contribution for each employee and income
allocated to the employee's account are fully vested after five
years of continuous service. The authority's contributions and
interest forfeited by employees who leave employment before five
years of service are used to offset future contributions of the
authority. Normal retirement date shall be the first day of the
month following the employee's sixty-fifth birthday or after ten
years of participation in the plan.
The authority's total payroll for the year ended September 30,
2011, was $130,112. The authority's contribufions were calculated
using the base salary amount of $91,059. The authority made the
required contributions of $6,826 for the year ended September 30,
2011.
NOTE I - RISK MANAGEMENT
The authority is exposed to various risks of loss related to
torts; theft of, damage to, and destruction of assets; errors and
omissions, injuries to employees; and natural disasters. The
authority's risk management program encompasses obtaining property
and liability insurance.
The authority transfers risk of loss by participating in a
public entity risk pool and contracfing with a commercial insurance
carrier for all major categories of exposed risk.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Financial Statements, 2011 - Continued
This includes coverage of property, general liability, public
liability, and workers compensation. The risk pool and insurance
contracted are obligated to meet settlements up to the maximum
coverage, after the authority's deductions are met.
There has been no significant reduction in insurance coverages
from coverages in the prior year. In addition, there have been no
significant claims that have exceeded commercial insurance
coverages in any ofthe past three fiscal years.
NOTE J - FEDERAL COMPLIANCE CONTINGENCIES
The authority is subject to possible examinations by federal
regulators who determine compliance with terms, conditions, laws
and regulations governing grants given to the entity in the current
and prior years. These examinations may result in required refund
by the entity to federal grantors and/or program beneficiaries. The
authority is subject to HUD's consideration of reducing grants in
order to have the authority utilize authority Equity to fund
expenses.
NOTE K - SUBSEQUENT EVENTS
Events that occur after the balance sheet date but before the
financiai statements were issued must be evaluated for recognition
or disclosure. The effects of subsequent events that provide
evidence about conditions that existed at the balance sheet date
are recognized in the accompanying financial statements. Subsequent
events, which provide evidence about conditions that existed after
the balance sheet date, require disclosure in the accompanying
notes. Subsequent to FYE, in October 2011, the authority caused the
HCV Program to pay $45,461 to the Public Housing Program reducing
the Inter Program balance by that amount. Please note that this
caused Finding 2011-2 to be modified to include the then net inter
program balance of $21,537 as Questioned Costs.
NOTE L - ECONOMIC DEPENDENCE
Statement of Financial Accounting Standard (SFAS) No. 14
requires disclosure in financial statements of a situation where
one entity provides more than 10% of the audited entity's revenues.
The Department of Housing and Urban Development provided $715,525
to the authority, which represents approximately 86% ofthe
authority's total revenue for the year.
24
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William Daniel McCaskill, CPA A Professional Accounting
Corporation
415 Magnolia Lane Mandevilie, Louisiana 70471
Telephone 866-829-0993 Member of Fax 225-665-1225 Louisiana
Society of CPA's E-mail [email protected] American Institute
of CPA's
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners Housing Authority of the City of
Grambling Grambling, Louisiana
I have audited the financial statements of the Housing Authority
of the City of Grambling (the authority), as of and for the year
ended September 30, 2011 and have issued my report thereon dated
February 7, 2012.1 conducted my audit in accordance with auditing
standards generally accepted in the United States of America and
the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General
ofthe United States;
Internal Control Over Financial Reportinc
In planning and performing my audit, I considered the
authority's internal control over financial reporting as a basis
for designing my auditing procedures for the purpose of expressing
my opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the authority's
internal control over financial reporting. Accordingly, I do not
express and opinion on the effectiveness of the authority's
internal control over financial reporting.
My consideration of internal control over financial reporting
was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies or material
weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weaknesses have
been identified. However, as described in the accompanying schedule
of findings and questions costs, I identified a certain deficiency
in internal control over financial reporting that I consider to be
a material weakness.
25
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Report on Internal Control.. Government Auditing Standards, 2011
Page Two
A deficiency in internal control exists when the design or
operation of a control does not allow management or employees, when
performing their assigned functions, to prevent, or detect and
timely correct misstatements. A material weakness is a deficiency,
or combination of deficiencies, in internal control such that there
is a reasonable possibility that a material misstatement of the
authority's financial statements will not be prevented, or detected
and corrected on a timely basis. I consider the deficiency
described in the accompanying schedule of findings and questioned
costs to be a material weakness. See Findings F-2011-2.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the
autiiorlty's financial statements are free of material
misstatement, I performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an
objective of my audit and, accordingly, I do not express such an
opinion. The results of my tests disclosed no instances of
noncompliance or other mafters that are required to be reported
under Government Auditing Standards.
The authority's responses to the findings identified in our
audit are described in the accompanying schedule of findings and
questioned costs. I did not audit the authority's response and,
accordingly, 1 express no opinion on the responses.
This report is intended solely for the information and use of
the board of commissioners and management, others within the
organization, the Louisiana Legislative Auditor and federal
awarding agencies and is not intended to be and should not be used
by anyone other than these specified parties. Under Louisiana
Revised Statute 24:513, this report is distributed by the
Legislative Auditor as a public document.
Wiffiam (DanieCMcCas^ff
William Daniel McCaskill, CPA A Professional Accounting
Corporation
February 7, 2012
26
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William Daniel McCaskill, CPA A Professional Accounting
Corporation
415 Magnolia Lane Mandeville, Louisiana 70471
Telephone 866-829-0993 Member of Fax 225-665-1225 Louisiana
Society of CPA's E-mail [email protected] American Institute
of CPA's
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Board of Commissioners Housing Authority of the City of
Grambling Grambling, Louisiana
Compliance I have audited the compliance of the Housing
Authority of the City of Grambling (the authority) with the types
of compliance requirements described In the U.S. Office of
Management and Budget (OMB) Circular A-133 Compliance Supplement
that could have a direct and material effect on each its major
federal programs for the year ended September 30, 2011. The
authority's major federal programs are identified in the summary of
auditor's results section of the accompanying schedule of findings
and questioned costs. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major
federal programs is the responsibility of the authority's
management. My responsibility is to express an opinion on the
authority's compliance based on my audit.
1 conducted my audit of compliance in accordance with auditing
standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United
States; and OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Those standards and OMB
Circular A-133 require that I plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit
includes examining, on a test basis, evidence about the authority's
compliance with those requirements and performing such other
procedures as I considered necessary in the circumstances. 1
believe that my audit provides a reasonable basis for my opinion.
My audit does not provide a legal determination on the authority's
compliance with those requirements.
27
mailto:[email protected]
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Report on Compliance...A-133, 2011 Page Two
As described in items F-2011-1 and F-2011-2 in the accompanying
schedule of findings and questioned costs, the authority did not
comply with requirements regarding Activities allowed/unallowed.
Eligibility and Special Tests and Provisions that are applicable to
its Housing Choice Voucher Program. Compliance with such
requirements is necessary, in my opinion, for the authority to
comply with the requirements applicable to that program.
In my opinion, except for the noncompliance described in the
preceding paragraph, the authority complied, in all material
respects, with the compliance requirements referred to above that
could have a direct and material effect on each of its major
federal programs for the year ended September 30, 2011.
Internal Control Over Compliance
Management of the authority is responsible for establishing and
maintaining effective internal control over compliance with the
requirements of laws, regulations, contracts, and grants applicable
to federal programs. In planning and performing my audit, I
considered the authority's intemal control over compliance with the
requirements that could have a direct and material effect on a
major federal program in order to determine my auditing procedures
for the purpose of expressing my opinion on compliance in
accordance with OMB circular A-133, but not for the purpose of
expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, I do not express an opinion on the
effectiveness ofthe authority's internal control over
compliance.
My consideration of internal control over compliance was for the
limited purpose described in the preceding paragraph and was not
designed to identify all deficiencies in internal control over
compliance that might be significant deficiencies or material
weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weaknesses have
been identified. However, as discussed below, I identified certain
deficiencies in intemal control over compliance that 1 consider to
be material weaknesses.
A deficiency in intemal control over compliance exists when the
design or operation of a control over compliance does not allow
management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness In intemal control
over compliance is a deficiency, or combination of deficiencies, in
internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected
and con-ected, on a timely basis. I consider the deficiencies in
internal control over compiiance described in the accompanying
schedule pf findings and questioned costs as items F-2011-1 and
F-2011-2 to be material weaknesses.
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Report on Compliance...A-133, 2011 Page Three
The authority's responses to the findings identified in our
audit are described in the accompanying schedule of findings and
questioned costs. 1 did not audit the authority's response and,
accordingly, 1 express no opinion on the responses.
This report is intended solely for the information and use of
the board of commissioners and management, others within the
organization, the Louisiana Legislative Auditor and federal
awarding agencies and is not intended to be and should not be used
by anyone other than these specified parties. Under Louisiana
Revised Statute 24:513, this report is distributed by the
Legislative Auditor as a public document.
M/illiam
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Schedule 1
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Schedule of Findings and Questioned Costs Fiscal Year Ended
September 30, 2011
Section I—Summarv of Auditor's Results
Financial Statements Type of auditor's report issued
Internal control over financial reporting;
unqualified
Material weakness(es) identified?
Significant deficiency(ies) identified?
Noncompliance material to financial statements noted?
X yes
ves
ves
no
X none reported
X no
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
X yes
yes
no
X none reported
Type of auditor's report issued on compliance for major
programs: Qualified
Any audit findings disclosed that are required to be reported in
accordance with section510(a) of OMB Circular A-133? X ves no
Identification of major programs:
14.871 Housing Choice Voucher Program
30
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Schedule 1
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Schedule of Findings and Questioned Costs (Continued) Fiscal
Year Ended September 30, 2011
The threshold used for distinguishing between Type A and B
programs was $300,000.
Auditee qualified as a low-risk auditee? yes X no
SECTION II - FINDINGS - FINANCIAL STATEMENTS AUDIT
FINDING F-2011-2 See SECTION 111 - FEDERAL AWARDS FINDINGS AND
QUESTIONED COSTS The finding is considered both a GAS finding and
an A-133 finding .
31
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Schedule 1
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Schedule of Current Audit Findings and Questioned Costs
(Continued) Fiscal Year Ended September 30,2011
SECTION HI - FEDERAL AWARDS FINDINGS AND QUESTIONED COST
FINDING NUMBER 2011-1
FEDERAL PROGRAM IDENTIFICATION:
Awarding Agency and Year - HUD OY 2010 & 2011
CFDA Title #14.871
Program Name - Housing Choice Vouchers Program
CRITERIA:
HUD Regulations require annual re-examination ofthe tenant file
including that:
The income reported by the tenant family be confirmed using the
Earned Income Verification (EIV) online system to ensure the income
is being correctly reported.
Any apartment failing the physical inspection be re inspected
within 30 days to ensure that Housing Quality Standards are
met.
CONDITION:
My test of 11 annual re-examinations of tenant files revealed
that for 2 files, discrepancies between the tenant reported income
and the EIV reported income were not reconciled in a timely
manner.
My test of 11 annual re-examinations of tenant filed revealed
that 1 of the apartments did not pass the HQS inspection and the
apartment was not re-inspected within a 30 day follow
up-period.
EFFECT:
It appears that the tenant did not pay the con-ect amount of
monthly rent and HUD paid an incorrect amount of HAP payment
because the correct tenant income was not used in the calculation
of tenant rents.
It appears that GHA did not ensure that the apartment was in
suitable condition per Housing Quality Standards.
PERSPECTIVE - The authority administers 90 units in the HCV
Program.
32
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Schedule 1
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Schedule of Current Audit Findings and Questioned Costs
(Continued) Fiscal Year Ended September 30, 2011
QUESTIONED COSTS - NONE
MATERIAL NON COMPLIANCE - YES
AUDITOR RECOMMENDATIONS:
I recommend that GHA follow the regulations and it's policy and
confirm tenant family income using the EIV program during each
annual re examination.
I recommend that GHA strictly follow ifs policies, procedures,
and HUD Regulations which require that each apartment be inspected
at least annually using the Housing Quality Standards specified by
HUD. ^
PHA RESPONSE - SEE CORRECTIVE ACTION PLAN
33
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Schedule 1
HOUSING AUTHORITY OF THE CITY OF GRABBLING Grambling,
Louisiana
Schedule of Current Audit Findings and Questioned Costs
(Continued) Fiscal Year Ended September 30, 2011
FINDING NUMBER 2011-2
FEDERAL PROGRAM IDENTIFICATION:
Awarding Agency and Year - HUD CY 2010 & 2011
CFDA Title #14.871, 14.860
Program Name - Housing Choice Vouchers, Public Housing
CRITERIA:
Federal Regulations including the 1937 Act of Congress
authorizing creation of Public Housing Authorities (PHA) and the
Annual Contributions Contract (ACC) between HUD and GHA prohibit
Federally funded programs from loaning monies to any other
programs.
CONDITION:
As of 9-30-2011, inter program accounts receivables and payables
were recorded as $70,615. During the fiscal year management did not
pay any nionies at all from HCV to PIH in order to reduce the inter
program amounts.
Of this amount, HCV owed PIH $66,998 and ARRA owed PIH
$3,617.Subsequent to the FYE, in October 2011, the HCV Program paid
$45,461 to the Public Housing Program, leaving the HCV to PIH a net
inter program balance of $21,537.
EFFECT:
GHA violated Federal Regulations by causing Federal programs it
administers to loan monies to other programs it administers.
At FYE the amount of inter program monies owed by the HCV
Program was recorded as $66,998. The amount of Unrestricted Net
Assets recorded by the HCV Program was NEGATIVE $10.661. Therefore
the HCV Program does not have the resources to pay off the amount
due to PIH.
Management caused the HCV Program to violate Federal Regulations
by borrowing monies from other Federal Programs and that the HCV
Program does not have resources to pay all of the money back.
QUESTIONED COSTS - $21.537
MATERIAL NON COMPLIANCE - NO
34
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Schedule 1
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Schedule of Current Audit Findings and Questioned Costs
(Continued) Fiscal Year Ended September 30, 2011
PERSPECTIVE
At FYE GHA recorded total assets in the amount of $2,873,969
AUDITOR RECOMMENDATIONS:
Thife inter program activity, in violation of The ACC and the
Act of Congress, has been in existence for over a decade. I suggest
that GHA Management make it a priority to 1) ensure that all inter
program balances are paid off as of 9-30-2012, and 2) GHA
Management report to the board of commissioners at each board
meeting the status of any inter program balances as of the date the
financial reports are presented to the board.
PHA RESPONSE - SEE CORRECTIVE ACTION PLAN
35
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Schedule 2
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Schedule of Prior Year Audit Findings Fiscal Year Ended
September 30, 2011
Finding F-2010-1
GHA did not property execute Depository Agreements with all
banking institutions holding GHA funds.
This finding is not repeated.
Finding F-2010-2
GHA did not comply with HUD regulations regarding physical
inspection of all HCV Units.
This finding is repeated as Finding 2011-1
36
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Schedule 3 HOUSING AUTHORITY OF THE CITY OF GRAMBLING
Grambling, Louisiana Corrective Action Plan for Current Year
Findings
For Fiscal Year Ended September 30, 2011
FINDING F-2011-1
CORRECTIVE ACTION PLAN:
Person Responsible - Ms. Bridgette Tanner, Executive
Director
Anticipated Completion Date - September 30,2012
Action Planned-
Beginning with all of our future re-examinations we will ensure
that staff use the EIV system and resolve any differences between
the income reported by the family versus the family income verified
by EIV.
Beginning with all of our future re-examinations we will ensure
that any HQS deficiencies noted in our physical examination are
corected and verified within 30 days by a staff re-examination.
FINDING F-2011-2
CORRECTIVE ACTION PLAN:
Person Responsible - Executive Director
Anticipated Completion Date - September 30. 2012
Action Planned - GHA staff will make every effort to ensure that
GHA has no inter program account balances as of 9-30-2012. The only
reason we envision for GHA not meeting the deadline is if the HCV
Program does not have the financial resources to pay off any
balance.
37
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Schedule 4
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Schedule of Compensation Paid to Board Members Fiscal Year Ended
September 30, 2011
Board members serve without compensation
38
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SCHEDULE 5
Housing Authority of the City of Grambling Grambling,
Louisiana
Schedule of Expenditures of Federal Awards For the Year Ended
September 30, 2011
Federal Grantor/Pass-through Grantor/ Federal Program or Cluster
Title CFDA # Expenditures
U.S. Department of Housing and Urban Development:
Direct Programs:
Low Rent Public Housing
Housing Choice Voucher Program
Public Housing Capital Fund Program
ARRA - American Recovery and Reinvestment Act
14.850a
14.871
14.872
14.885
$ 220.980
423,136
61,797
11,612
Total Federal Expenditures $ 717,525
See accompanying notes to schedule of expenditures of federal
awards.
39
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HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Notes to the Schedule of Expenditures of Federal Awards For the
Year Ended September 30, 2011
NOTE A - General
The accompanying Schedule of Expenditures of Federal Awards
presents all of the Federal awards programs of the Authority. The
authority reporting entity is defined in Note 1 to the basic
financial statements. Federal awards received directly from federal
agencies, as well as federal awards passed through other
governmental agencies are included in this schedule.
NOTE B - Basis of accounting
The accompanying Schedule of Expenditures of Federal Awards
Programs is presented using the accrual basis of accounting, which
is described in Note 1 to the authority's basic financial
statements.
NOTE C - Relationship to Basic Financial Statements
Federal awards revenues are reported in the authority's basic
financial statements as follows:
Low Rent Public Housing 220,980
Housing Choice Voucher Program 423,136
Public Housing Capital Fund Program 61,797
ARRA - American Recovery and Reinvestment Act 11,612
NOTE D - Relationship to Federal Financial Reports
Amounts reported in the accompanying schedule agree with the
amounts reported in the related federal financial reports except
for changes made to reflect amounts in accordance with GAAP.
NOTE E- FEDERAL AWARDS
For those funds that have matching revenues and state funding,
federal expenditures were determined by deducting matching revenues
from total expenditures. In accordance with HUD Notice PIH 9814,
"federal awards" do not include the authority's operating income
from rents or investments (or other Non-federal sources). In
addition, the entire amount of operating subsidy received and/or
accrued during the fiscal year is considered to be expended during
the fiscal year. i.
40
-
Housing Authority of the Town of Grambling (LA097) Grambling,
LA
Entity WIcto Balance Shttot Summary
SiAmisslon Type: AuditBCl/A-133 Fiscal Year End:
111 Cash - UnrNtrlctid
113 CBih - OthM Rettrictod
114 Csih-TMwntSMuntyDtpMnt
115 CBth-RMtrtcMdtoiPavnwnt or Currant UablKlM
100 T a U C t t h
121 Accounts RicchraM-PHA Protecto
122 Accounts R«Mlvabl« - HUD Ottwf Pfojicts
124 Accounts RacehraUa - Otnat Gmwntnent
125 Accounts RMWivtbIa - UscellanMus
126 Accounts RMMvaUa - Tansnts
126.1 Mtiw»nt»lw0o«b8ulftceourt»-Tw««»
12S2 Allowanco tor Doubtful Accounts - Olttw
127 Note*. L o r n , SMortgagMRMaivaUe-Currant
128 Fraud Recovwy
12S-1 MICFnnnco tor Doubtful Accounts-Fraud
129 Accruadlr«sractRaeriv>Ela
120 Total Racalvsblst. Mat D(Mlow«ncaa tor Doubtful Accounts
131 Imrestmants-Unrastrlctad
132 Invartmarfti-Rartrtclad
13S Invastmants-RastrlctadforPaynwntarCunantUabllHy
142 PrapaldExpanaaa and Other Aasata
143 inventorlaa
143.1 ABoMncabrObaolatalnventoilet
144 Inter Proirani Dua From
145 Aasata Hdd for Sale
ISO Total Current Aasata
181 Land
162 Buddnfla
163 Fumilura.EcMpmer«&Mfldiinary-D«
-
351 Long-tenn Debt. Net of Cunent - Capital ProiedaAilottgaga
Revenue
352 Long-term Debt. Nat of Current-Operating Borro
-
Housing Authority of the Town of Grambling (LA097) Grambling,
LA
Entity WItle Revenue and Expense Summary
Submission Type: Audited/A-133 Fiscal Year End: 09/30/2011
i 70300 Net Tenant Rental Revenue |
70400 Tenant Revenue - Other
70500 Total Tenant Revenue [
,70600 HUD PHAOpeiUSng Grants
70810 Capital Grants
170710 htanagement Fee
70720 teaat Management Fee
{70730 Book Keeping Fee
1 70740 Front Una Senrtce Fee
70750 other Fees
70700 Total Fee Revenue
Toeoo Other Government Granta
71100 Invaatnwnincome-Unraatrictsd
71200 Mortgage Interast Income
71300 Proceed* from Diapoattlon Of Assets Held for Sale
71310 Cost o( Sale of Aaaets
71400 Fraud Recovery
71500 Other Revenue
71800 Oein or Loee on Sale ofcapital Aasata
72000 tmeAment Income - Restricted
70000 Total Revenue
91100 AdminlatratlveSatarJea
91200 Audling Fee*
91310 Boolt-keeplngFee
91400 AdvertislnaandMaikanng
91500 Employee Banefflcontilbuliona-Admlnittrativa
91000 Office Expeneee
91700 Ugal Expenaa
91 BOO Travel
91B10 ABocated Overhead
91900 Other
O1OO0 Total OpetaHna-AdmtrMiath*
82000 A**et Msnagament Fee
82100 Tenant Servicee - Salaries
92200 RekKMIon Costs
92300 EmFloyeeeanefflContribulions-TenanlSenicM
924O0 Tenant Service*-Other
92500 Totil Tenant Service*
93100 VMer
83200 Oectridty
93300 Gae
93400 Fuel
93500 Labor
93600 Sewer
93700 Employee BenefH Contributions-UUIitleB
93800 Other UDIIIinExpan**
93000 Total UOlRlea
941M Ordnary Maintenance and Operallona-Labor
94200 Ordnary Maintenance and Operationa-Material* and Other
94300 Ordnary Maintenance end Operations Contract*
84500 EntFtoyeeBanemConbibutions-OrdinaryMaintenance
94000 Total Maintenance
95100 Protective Sanice* - Labor
85200 ProtacHvaSewicea-Other Connact Cost*
95300 Protadhre Servicee-Other
95500 Employee Benefit Conbtbubon* • Protective Sen/icea
9S000 Total Protftdtve Service*
96110 Property Insurance
190120 UaUiny Imurance
Proied Total
$101,064 1
$11,256
S112322
$240,860 i
$41,797
$2B0
$5,637
$401,216
$8B,«e
$8,930
$218
$18,854
$23,947
$458
K 1 1 3
$2,796
$125578
$871
$871
$124
$10,759
$1,366
$3S1
$12,800
i $25,748
! $23,332
! $21,623
$2,493
1 $73,196
$0
$19,887
r.463
i^«T,u«-*n„ 14,885 FormulB t i ^ V ^ e r a Capital Fund Choice
Vouchera sbmiius Grant !
$0 1 SO
$423,136 :
$1,408
$71
$424,615
$35,706
$2,970
$14
$6,731
$7,639
$51
$457
$53,566
$0
SO
$0
$0
1 $839
$152
$11,460
$11,812
$152
$152
$0
I
$0
1
so
! 1 so
i
14DVPDisattat Voudw Program
SO
$0
$0
$0
$0
$0
1 "
Subtotal
$101,064 j
$11JS8
$112,322 1
$664208
$53557,
$0
$280
ST2*S
$71
$837,443
$104,364
$8,900
$233
$25,585
$31,586
$510
$4,570
$2,850
SlTBflW
$971
$971
$124
$10,758
i $1,366
$351
$1Z600
' $25,746
$23,332
$21,623
$2,493
$73,196
$0
$ia,G97
1 $B,1t»
EUM
$0
$0
$0
SQ
$0
i
1 $0
$0
$0
Total
$101,064
$11,258
$112,322
$664,268
$53,257
$0
$280
$7,245
$71
$837,443
$104,304
$9,000
S233 !
$25,565
$31,586
$510
$4,570
$2,850
$179,088
$971
$871
$124
$10,759
$1,308 1
$351
$12,600
i $25,746
! $23,332
$21,823
$2,493
$?3.19e
1 ^
1 $19,697
{ $8,102
-
90130 Wtorlonen-e Compeniatlon
96140 AH Other Insuranc* -
06100 Totri insurance Premiums
96200 Other General Expeniea
96210 Compensated AtaencM
06400 Bad debt-Tenant Rents
86500 Bad debt-Mortgagee
96600 Bad debt-Other •
96800 Severance Expenee
96000 Total Other General Expenee*
96710 Interest of Mongage (or Bonds) Payabla
86720 Interest on Notee Payable (Short and Long Temi)
96730 Amortization of Bond Inue Coits
96700 Totd Interest Expenee and Amortization Cost
86900 Total Operating Expanaea
97000 Exceaa of Operaling Revenue over Operating Expenaee
87100 Extraordnary Maintenance
97200 Caaual^Loasaa-Noncapitalized
97300 Hou*lngA*ai*tance Payments
97350 HAPPortabillty-ln
97400 I3epreciaaon Expenae
07500 Fraud Leases
C7600 CapMOunays - Governmental Funds
07800 Dwelling Units Rent Expense
90000 Total Expanaea
10010 Operating Transfer In
10020 Operating transtor Out
10O3O Opereting Transfer, from*. Primary Government
10040 OpersUngTransteraflomAo Component Unit
10050 Proceeda from Notes, Losns and Bonds
10060 Proceed* from Property Sdes
10070 Extraordnary Item*, N*tQ«tnrt.oe»
10060 Spedaltteme(NelQain/Lo**)
10091 Inter Project Exce«*Ca*hTranBfer In
10092 Inter Project ExceesCaah Transfer Out
10093 TrarMfersbetiwenPragramandPtoJMl-in
10094 Tramfara between Projed and Program-Out
10100 Total Other financing Sourer (Ueea)
tOOOO Exceea (OeHdeney) of Total Revenue Over (Under) Total
Expenses .
11020 Reqiired Annual Debt PrlndpelPeymenta
11030 Begi^^^ingEqJlty
11040 Prior Period Acfustment*. Equity Transfera and Correcflon
of Errora
11050 Changea in CompenaatadAbeence Balance
11060 Changea In Contingent Uabillty Balance
11070 Changes In Unrecognized PenaionTranaltlon uabillty
11060 Change*inSpeddTemi^SeveranceBenefitsUafatmy
11090 Chsnge* in Allowance for Doubtful Account* - DwaHlng
Ranta
11100 Change* In Allowance lor Doubtful Accounts-Other
11170 AdmlnU&aUve Fee Equity
11160 HousingAaaiatancePaymentsEquty
11190 umtMonthaAvallabla
11210 Numbei of Urst Months Leased
11270 ExcesaCaah
11610 LandPurchase*
11620 Bmidng Purchases
11630 Furniture & Equipment-DweOingPurcha***
11640 Furniture i Equipment-AdmlnlstrathePurehaaae
11650 Leaaahdd Improvements Purchaaaa
11660 Inftaatructura Purchase*
13510 CFFP Debt Sentce Psfrnanta
13901 Replacement HouHngFador Fund*
$2,892
$5,540
$35,592
S10,753
$6,846
$5,254
$24,853
SO
$273,100
$128,028
$750
$175,793
$449,733
$20,000
-$20,000
$0
-$48,517
$0
$2,605,399
$11,460
1038
940
$573,163
SO
$40,810
$6,347
$0
$0
$0
50
SO
• • - $962 i
$514 1
$2,115
$4,265
S5.493
1
SO
1 $9,776 $0
$0 1 $0
$65,461
$359,154
$372,329
$1,244
$925
$439,959
$0
-$15,344
$0
$138,428
$6,034
-S9.736
$130,852
1102
1102
$152
$11,460
$152
$0
$11,460
SO
$0
-$11,460
SO
SO
$0
$0
$0
$0
$0
$0
$0
$8,034
-$6,034
$3,654
S6,054
$37,707
$4,265
$16,246
$8,846
$5,254
$34,831
$0
$338,803
$488,640
$750
$372,328
$1,244
$176,718
$889,844
$20,000
•$20,000
SO
-$52,401 .
$0
$2,837,859
$0
-$9,736
$136,852
2140
2042
$573,163
$0
$46,910
$6,347
SO
SO
$0
$0
$0
$0
$0
$0
$0
so
$0
so
$0
$3,854
$8,054
$37,707
$4585
$16546
$8,648
$5554
$34,631
$0
$336,603
$496,640
$750
$372,329
$1544
$176,716
$689,844
$20,000
-$20,000
$0
-$52,401
• $0
$2,837,858
$0
-$9,736
$136,652
2140
2042
$573,163
$0
$46,810
$6,347
$0
$0
$0
$0
$0
-
HOUSING AUTHORITY OF THE CITY OF GRAMBLING Grambling,
Louisiana
Status of Prior Year IVIanagement Letter Items For the Year
Ended September 30, 2011
ML 2010-01
Inter program loans from 1 Federal Program to anotlier in
violation of Federal Regulations.
This is repeated as Finding 2011-2